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BEAT THE MARKET MAKER - BTMM - STEVE MAURO - BOOTCAMP WEEK 2 PART 1 — Transcript

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0:01All right, welcome back. Week two.
0:04Nothing's changed. This is still a no BS
0:06zone. A lot of you did the homework.
0:09Some of you email me reasons why. That's
0:11okay.
0:13But to get the most out of this, I need
0:15you to do the assignment sometime during
0:18the week.
0:20All right. After last week's session,
0:22the way it went, obviously realizing two
0:24hours is not enough.
0:27Still going to do two hours, but I'm
0:28going to extend the the cycle. I
0:30initially thought it was going to be 6
0:32to 8 weeks. Obviously, we're going to be
0:338 to 10, perhaps 12 weeks. Uh the cycle
0:36will run. All right. It's and the bottom
0:38line is however long it takes till I get
0:40through the material that I feel you
0:42guys need
0:45to see what you need to see.
0:48All right. Last session, I didn't think
0:50it was that great, but a lot of you
0:51wrote me some emails and said that you
0:52had an epiphany. You saw saw the light
0:54switch went on.
0:57That's great. That's the point.
1:01So, whatever it is, whatever piece that
1:04I give you that's missing or whatever
1:05aha moment you have, that's the whole
1:07point of these
1:09and I want what's best for everybody and
1:11that's to make some money trading.
1:14All right, chat box. Chat box is going
1:17to be ignored till the end of the
1:18segments. I'll do a segment, I'll open
1:20the box back up and take a look.
1:24I'll take a few questions that are
1:25relevant to the stuff that I'm talking
1:27about. Okay? You ask me about the AJ
1:29chart or some other totally non
1:34or I say should I say off-topic thing,
1:36I'm not going to answer it.
1:39Okay?
1:42So, work with me a little bit. We're
1:43going to talk about a segment of stuff.
1:45Ask me a couple questions at the end.
1:47Right? What I need from you, which is
1:48for some reason this is absolutely too
1:50hard for you guys. This is what I need.
1:52Back to managing your expectations.
1:54I expect you to follow along free from
1:56distraction. I asked you that last week
1:58and people were trading and paying their
2:00doing their taxes and ask me about
2:02charts.
2:06What I need you to do is just pay can
2:07you pay attention for 60 minutes? Take a
2:10five or 10 minute break and then give me
2:1160 more. I just want two hours a week.
2:15All right. It it Listen, I'm a person,
2:17too. Don't forget when you ask me stuff
2:19like I'm sitting here talking. I wrote
2:21this all week. I'm excited. I Heidi
2:23turned it into slides and I'm here and
2:25then I'm sitting here pouring my heart
2:26out to you guys and you asked me some
2:28about some chart from 10 years ago.
2:30That hurts my feelings, man. All right.
2:32It It also hurts the class, hurts you,
2:34and slows the pace. So, like I said,
2:37give me two hours a week. Make an honest
2:39effort at completing all the assignments
2:41on time. Execute anything we talk about
2:43in demo until you master it. Refrain
2:47from negativity in your own mind. That's
2:49the hardest thing to do is for you to
2:52refrain from negative thoughts and
2:54negative concepts that are bringing you
2:55down. I assure you
3:00that if you could put all this stuff
3:01behind you, all your baggage, you're
3:03going to start to have success.
3:06Take your time to really soak up the
3:07information. Rushing to get finished is
3:09exactly what I don't want to see, man.
3:12Okay?
3:13Just two hours. It's all I ask. Full
3:16attention.
3:19focus.
3:20All right. Mention again, stop trading
3:24live during this time. Give yourself a
3:25little break, man. Remember I asked you
3:27in the survey, do you have a plan where
3:30you could take a few weeks off, a month
3:31off away from trading and and focus?
3:36Okay, that's what I need you to do.
3:41If you're trading live right now, this
3:43is for you. Switch to demo until you see
3:45a marked improvement in your trade
3:46selection and chart vision. It's going
3:49to happen, man. You're going to have
3:50your moment. I don't know when it's
3:52going to be. It's different for
3:53everyone.
3:57Okay. Stop feeding these guys.
4:01Okay. Quote of the week. Very important.
4:04I had a couple emails where people were
4:06very upset with themselves or mad or mad
4:08at me for that matter.
4:11And it occurred to me to tell you guys
4:13this. It's very important. One trade,
4:16win or lose, should not define you as a
4:19trader ever.
4:21You should not have a losing trade that
4:23eats into 50% of your equity. Shame on
4:26you. Should never have a losing trade
4:28that eats into 25% of your equity. And
4:30if you have a trade that doubles your
4:32account, don't become fully yourself.
4:36Okay? One trade should never make or
4:38break you as a trader, as a person,
4:41as a father, as a wife, as a husband.
4:45Okay?
4:49Your climb should be slow, steady, and
4:51clean. 2% risk. Double your demo
4:54account. When that happens, move on to
4:56the next segment of the journey, which
4:59is to do that live.
5:02All right. Student mail.
5:05I'm going to go over some mail that came
5:06in, talk about some things,
5:10but I want to preempt this. Abusing the
5:13instructor will not make you a better
5:15trader.
5:17Denying that what I know is real
5:21to yourself,
5:23if you just can't admit it, it keeps you
5:24paralyzed and it favors the reputed
5:27market makers.
5:30Okay, there was a letter that went out.
5:33Some of you saw it. I'm not going to say
5:34the name, but it was kind of a dig on
5:38me, I guess. Some of you seen it. You
5:40know what I'm talking about where they
5:42compared the stop hunts to the weather.
5:45This was the chart.
5:49Anything that measures the higher low
5:51will look like this. It's a parlor
5:53trick.
5:54We measure the highs and lows and
5:56weather similar to how trading is
5:58measured. So obviously a chart where the
6:01weather has one day where there's a
6:03freeze or one day where there's a a
6:04spike in the temperature. If you're
6:06measuring the highs and lows, it's going
6:09to look like this.
6:11Okay?
6:13Keep that in mind. Bad mouthing me
6:16doesn't change the fact that I'm right.
6:17And I don't want I'm not trying to sound
6:19arrogant. I'm just telling you guys I
6:21have been called crazy.
6:24Well, my whole life, but in my trading
6:26career for a long time, I'm not
6:29offended.
6:31I know what I know. And the reason that
6:34people don't want to believe me is
6:36because there's so much information out
6:38there that's on the other side of this
6:41line that we draw in the sand between
6:43market makers and retail traders.
6:47Okay?
6:48badmouthing me with weather charts and
6:51things that say the market maker doesn't
6:53exist and it's random is simply an
6:55excuse for your own shortcomings. No
6:57offense to anybody.
7:00If you don't see what I see and you
7:03struggle with the method,
7:05of course it's easy to put point the
7:07finger at Steve and say he's nuts and
7:09that oh look, this is a weather chart.
7:10Take the low off the stop hunt from the
7:12weather and and trade it. And by the
7:14way, just for the record,
7:17if uh
7:19you could trade weather,
7:22I went long right there.
7:24All right.
7:27After the market makers went into
7:29consolidation after forming the low and
7:30spiked the stop hunt, I took it, man.
7:33And I traded weather long. And guess
7:34what? I hit the sun.
7:39All right, man. So anyway, look, the
7:42same day that this email was distributed
7:44or newsletter or whatever the hell it
7:46was, this is what happened in the
7:48market. And by the way, the letter said
7:50that the market's random, I'm crazy, and
7:52that there's no such thing as a market
7:54maker. He's the boogeyman. Pretty much
7:55what they said. All right. Okay. So, the
7:57same day that this was written, this is
8:00what occurred in the market. It cracked
8:01me up. All right. Look
8:06one pair
8:08USDCHF.
8:12Can you see the red
8:16JPY head and shoulders to the low, three
8:19hits to the low, hit the high, back in
8:21the consolidation.
8:25EuroUSD
8:27held a level during US session moved it
8:30move I'm sorry during Asia uh London and
8:32moved in the US session
8:35same thing right past the 4hour
8:41consolidation on GBPCHF and then they
8:43worked it into the stop hunt zone box
8:46and dropped spiked to the outside ended
8:48the day in consolidation
8:50it's kind of funny man all right here's
8:52GJ same thing. Perfect W formation. This
8:57was on March 19th. That letter came out
8:59like the 18th and this is the 18th going
9:01into the 19th.
9:03Anyway, some of you seen it, some of you
9:05didn't. It's not important. But the
9:06bottom line is, look, it goes on and on,
9:08man. It's actually hilarious. And then I
9:10received some of these emails. Steve, I
9:13finally doubled the demo using 2% risk.
9:15Respecting it like a live account. It
9:17has been tough, but now that I have done
9:19it, I feel more confident in doing it
9:20with the live account. I am getting it
9:23with the help of the DMR crew and you.
9:25Thank you. Well, that was a beautiful
9:26letter. Thank you,
9:29Steve. Thank you for your commitment to
9:30make everyone successful. This is way
9:32above and beyond any other trading
9:33school. I like to think that, too. Since
9:36beginning of the year with Jim on board
9:37the DMR, my trading has turned and I've
9:40had two positive months in a row with
9:41consistency and feel I'm starting to
9:42turn the corner. I would say so, buddy.
9:45You are turning the corner. And this
9:47outside structure to the high was a
9:49perfect trade that a buddy of ours took.
9:52and he got stop hunt to stop hunt. He
9:54spiked out at the open for his plus 50.
9:58Nice trade there.
10:00So anyway, still think it's random. I
10:03know you don't. I know you guys are on
10:05my side. You wouldn't be here. But
10:07here's the point. Don't let the
10:09negativity of the naysayers get into
10:11your head. You guys have enough baggage
10:13and to overcome on your own. And
10:14you don't need these other people
10:18telling you and putting ideas into your
10:21head. Because they don't see it doesn't
10:23mean you can't see it.
10:26And if you're struggling, we're going to
10:27change that. That's why I'm here. That's
10:29why I'm committed to you guys on
10:30Sundays. All right, that's enough of the
10:33mail. Let's get this behind us.
10:34Just wanted I wanted to respond to that
10:36letter. It came out. I thought it was
10:37pretty shitty. They're former students
10:39of mine, by the way. Well, actually,
10:40they're still students of mine. They're
10:42welcome here anytime. But they put this
10:44letter out and pretty much made a dig on
10:46me and I just wanted to throw it out
10:47there.
10:50All right. Foreign privacy.
10:54Listen, I'm letting out my videos, my
10:56recordings, and you know what happened
10:57last Sunday. By 11:00, this thing this
11:00recorded session was out there already.
11:03So, I'm trying to protect everyone's
11:04personal data, my material,
11:08the class videos, and the boot camp
11:09segments. So, for now, I need to leave
11:11it set to private mode. Some of you ask
11:14me why you can't PM people and go
11:16through the database and stuff.
11:18Just understand, I need to leave it like
11:20this for a little while. We're working
11:21on things. I'm I'm actually
11:24considering
11:26changing the whole form over to another
11:28venue. I'll let you know. We're working
11:30on it so all this can stop with
11:33the IP addresses and the lockdown, all
11:35the garbage. I'm tired of it. I know you
11:36are, too. It's frustrating. It cracks me
11:39up when I can't even log in my own forum
11:41and I got to wait an hour for the thing
11:43to reset cuz I tried to log in on my
11:45iPhone or something, you know? I know
11:47it's frustrating for you guys and I
11:49appreciate your patience.
11:51So, I'm in the process right now of
11:52trying to find a more secure venue that
11:57will give us some of the freedoms back
11:58that we had in the beginning. Okay.
12:01[snorts]
12:01So, work with me on this.
12:04All right. I think that's it for
12:05housekeeping. All right. All right. So,
12:07I went over mail
12:09the giveaway housekeeping.
12:15Okay.
12:16Market maker boot camp today.
12:20R&D. We're going to look at some of the
12:21homework that was done.
12:24We'll talk about the weekly cycle some
12:25more. We're going to cover flash cards.
12:27And then I'm going to cover the trading
12:28zone. That's the schedule for the next
12:29few minutes or for the next hour and a
12:31half. We'll go [snorts] from there.
12:34All right. Paper's out, ready to go.
12:38Okay, what I want you to start to do is
12:39look at the weekly cycle on a 4hour
12:41chart. [snorts]
12:43Okay, write this stuff down and I'll
12:46show you some examples.
12:48What I want you to do on the 4hour chart
12:51is block the first eight hours off.
12:54Mark the high of the first eight hours
12:57and mark the low of the first eight
12:58hours. Two bars.
13:01This in essence
13:04is the accum accumulation phase of the
13:07week.
13:09It's like I told you last week, it's the
13:10Asian session of the week. And it's
13:13ironic that it starts at Asia. Why two
13:16bars? Two bars represents the Asian
13:18session. 8 hours.
13:23The first 8 hours in the accumulation
13:26phase of the market forms the
13:28psychological support and psychological
13:31resistance level.
13:35Do you understand? There's a perceived
13:38support and a perceived resistance that
13:39accumulates in the first part of the
13:41week.
13:43The dealer has to exploit those levels
13:48in order to get people committed to the
13:50game, spend their money, the things that
13:52I talked about before.
13:55What they will do
13:58is they will trade away from those
14:01trigger the stops. The same things that
14:03happen intraday.
14:07You count the first two bars at the
14:09tracer.
14:10Okay, let's look at it. Let me grab my
14:13pen.
14:15Okay, so in essence, here's the first
14:18eight hours of the week, right?
14:22Okay, now there happens to be a line
14:24here. Let's just draw the line like
14:26this. Pretend here's what you got. Look,
14:30accumulation phase, first eight hours of
14:32the week, the dealer hits the stops on
14:35the psychological resistance level. He
14:38drags it away and breaks the
14:41psychological support.
14:46Okay. Forms the midweek reversal and
14:49trades back into the range.
14:54After the false move week beginning, you
14:56trade away from the high initial high of
14:59the week.
15:02Okay?
15:04You have your one, two, three pushes in
15:08here. The dealer ends back in
15:09consolidation. This is the week, right?
15:12This is an entire week. But this is the
15:14same exact behavior that I've
15:16illustrated for you intraday.
15:19Yes, Ben, it is this easy. It really is
15:22this easy. It's just you got to open
15:24your mind and try to see it. Look,
15:27here it is again. First eight hours are
15:30blocked. psychological support,
15:31psychological resistance, dealer spikes
15:33high, grabs the traders. He doesn't make
15:36three levels, but he makes a sloppy W.
15:39Comes back late in the week and hits it
15:40again. This is like GBP this week, by
15:42the way. So, if you took a trade here,
15:44you probably bagged. When he comes back
15:47to the level and doesn't take it, you
15:48got a trade right here. And in four
15:50hours, this one paid out huge. Goes into
15:53consolidation,
15:55ends the week after he picks up the
15:57pendings from the previous level, right?
16:00It's all about perceived
16:04support and resistance.
16:09Most traders
16:12fall for these moves. I can't say this
16:14enough. Most traders fall for the
16:16garbage.
16:19So, if you understand what they're doing
16:20and don't fall for it,
16:23identify the pattern on a larger time
16:25compression over the course of the week
16:27and you could project where the dealer
16:28is going to go for the week.
16:31You understand?
16:34I know it's like, "Oh, Steve, it can't
16:35be that easy." It really is. It's
16:37simple.
16:39Okay. First eight hours, perceived
16:42support and resistance. What does the
16:44dealer do? He railroad tracks past it
16:47which 8 hour railroad tracks right false
16:50move weak beginning
16:53he rises up only two levels excuse me he
16:57hits it outside structure to the high
17:01one push
17:03two pushes
17:06three pushes to the low dealer ends back
17:09in the range exactly in the same level
17:11he started but not quite so high to let
17:14out the strong holders. Okay, 4hour
17:16chart, my friends.
17:19Pay attention cuz guess what the
17:20homework's going to be.
17:24Okay, a choppy week,
17:28not as clean, not as beautiful. But
17:29guess what? Psychological support and
17:32resistance accumulation phase of the
17:34market. First 8 hours, dealer sets the
17:37level, the market maker spread is set
17:40for the week in the first session of the
17:43first part of the week. Remember
17:49eight hours. Do I have to do it for you?
17:52Accumulation. Market makers hit the
17:54high, hit the low, form the spread. They
17:56hit the stops, they rise. Most of the
18:00time, three levels textbook. They pull
18:02back and the end the day back in
18:04consolidation. Every one of you that's
18:06here saw me draw this for you in a sales
18:08presentation.
18:10Okay? Okay. So, what I'm asking you to
18:12do is to understand
18:14this segment of the market intraday and
18:17apply it to a larger time compression 1
18:19hour or 4 hour. 4 hour is easier to see
18:22when you look at look at it like this.
18:24It's a different take on it.
18:27And understand that the pattern that
18:30Steve sold me on
18:32is the same exact thing that the dealer
18:34does over the course of the week.
18:37The dealer accumulates and sets the
18:39spread on the first day of the first
18:41part of the week. Then he will make a
18:43unidirectional swing away from those
18:45psychological support and resistance
18:47levels to trap the traders and make them
18:51make irrational decisions. Burn your
18:54margin, lift your stop, and do stupid
18:56stuff.
18:58I'm trying to figure out a way that
19:00whenever I post a chart to email the
19:02masses so you guys know that I was in
19:03the forum and you can go have a look.
19:06Some of you may or may not have seen my
19:08CHF chart uh Swissy chart where I put
19:11what the dealer was saying and what the
19:13traders were saying. If you did not see
19:15that, I invite you to go into the forum
19:17under Swissy for the answer and have a
19:19look.
19:22All right. It's the psychological
19:25battle that's going on between the
19:26traders and the dealers.
19:30I'm going to post a lot of those up. I'm
19:31going to start marking them down and
19:33show you what's going on.
19:36What I'm trying to get you to do is see
19:37the market in a different light for what
19:39it really is.
19:42Okay?
19:46Same thing applies here. The dealer
19:48shows short Understand
19:51this is a larger time compression. So
19:52this is a couple hundred pips to the
19:54downside. The dealer breaks the
19:55psychological support level and runs
19:58down,
19:59right? He then spikes it again. This is
20:01the same pattern I've shown you 100
20:03times intraday, right?
20:06He runs up a couple hundred pips, breaks
20:08the psychological resistance level,
20:11forms the M, the perceived continuation,
20:14shifts the zone in 4 hours, one big
20:18drop, and ends the week back in
20:19consolidation. That, my friends, over
20:21the course of the week is this that
20:23I've been drawing for you since you met
20:24me.
20:26So now, let's think about this for a
20:28minute. And I'm I'm going to make some
20:30slides for this, but it it's occurred to
20:31me a couple days ago. I've been thinking
20:33about it is that
20:35everyone knows the lot sizes on a
20:37platform. You have micro, mini, and
20:40standard, right?
20:43Let me write it down. Micro,
20:45mini,
20:47and standard. Those are the three lot
20:49sizes on a platform. Now, think about
20:51this for a minute.
20:54There are three variations of my
20:56pattern. Micro, mini, and standard. What
21:00do I mean? micro view of the of price
21:03action is the little patterns intraday
21:07that Kim K calls the pushes.
21:10That's the micro view of price action.
21:14The mini view of price action would be
21:16the entire day collectively. Stop hunt,
21:20stop, hunt, high, drop, end the day back
21:22in consolidation. This pattern right
21:24here would be the mini view.
21:28When you switch to the standard view,
21:30you're looking at the course of the
21:32week, which is the same pattern
21:37over five or five and a half days or 6
21:39days, whatever you say that the forex
21:41market trades.
21:43So, the micro view, the push is
21:44intraday, the mini view, the intraday
21:47structure and pattern, the standard
21:49view, the entire course of the week.
21:53In order for you to be successful at the
21:55method, let's try starting at the
21:58standard view, which is this big view
22:00right here, and then drill down to the
22:03mini view, intraday, looking for the
22:04stop hunt, and then the micro view,
22:06understanding the pushes. Start with a
22:08big picture and scale it down. Crank
22:11down your microscope. Crank down your
22:12microscope to the micro view. And I'm
22:15going to add this to my teaching. I
22:16think it's helpful. Maybe not. I don't
22:18know.
22:21The biggest problem
22:25is understanding where the peaks are,
22:27the high of the week, low of the week,
22:28and trading away from those areas. And
22:31that's, you know, I talk about
22:32legendary, that's what Sunny did, did,
22:34does, and made her successful.
22:39So, I want you to understand the first 8
22:41hours is the accumulation phase of that
22:45particular day, Sunday, right? Let me
22:48clean this up.
22:52You guys remember tonight is like the
22:54breakout session, right? After I'm done,
22:56I'll take a break and uh Zen's going to
22:58come on. Cars are going to come on and
23:00then tomorrow night we have another 3
23:02four hours of training, right? We got
23:04Ray, Kim, and Jim tomorrow.
23:08I had to get a sip of Diet Coke.
23:11Okay, so listen.
23:14When you mark these charts up, go back
23:20and block off the first eight hours.
23:22Take a horizontal line,
23:26run it across here. Take a horizontal
23:28line, run it across here. The first
23:30eight hours. I know it's crooked. The
23:32first 8 hours. Now, what are you looking
23:33for? The dealer exploits
23:37the psychological accumulation phase of
23:40the market by cutting the support level.
23:43when he cuts the support level, there's
23:45some hunk of traders, group, not humpty
23:48traders, a group of traders that are
23:50jacked up and take short positions. Look
23:53at the CHF chart that I marked up if you
23:55haven't seen it. The dealer shows you
23:57something Sunday and Monday to make you
23:59think
24:02that you got to get short.
24:04Excuse me. When you get short, and I'm
24:08talking about old retail traders, not
24:09us. We know better.
24:12He comes back to the level and spikes
24:14it. He hits the stops of the people that
24:16got it right long in here.
24:19Right? Think for a minute.
24:23If people got short here and some people
24:26got long here, what's the next move for
24:28the dealer? In order to take those
24:30people out, he's got to come back and
24:31hit the stops. Hence, M or W. That's
24:35where the M and W comes in.
24:38And if I know if the dealer goes back
24:40there and spikes the level and closes
24:42back above,
24:44that is a high high probability trade.
24:47That's why I always tell you second leg
24:50MRW.
24:52And if you understand what I'm saying,
24:54if it really resonates and clicks with
24:56you, you will understand, stop taking
24:59and start taking second leg MRW and
25:02all this aggravation that I'm causing
25:04myself will disappear.
25:09And if the light bulb just went off,
25:11congratulations. This is what I want you
25:13to understand.
25:15This is why M andW because the dealer
25:17makes a fake move. A lot of you go, "Oh,
25:20I saw a little accumulation, Steve, and
25:21I took it back long." Then what happens?
25:24You get stopped out over here and you
25:26curse me out in five different
25:28languages. I think 20 different
25:30languages. You guys are from all over
25:31the place.
25:33Then the dealer comes back and spikes
25:34the level, hits your stops, and you fell
25:37for exactly the
25:40that he was trying to accomplish.
25:43If you wait for the second leg most of
25:46the time, with the exception of the
25:48third leg, which doesn't happen that
25:49often, you are going to make money. Here
25:53you took this here short, and then what
25:55happens? is the dealer comes back
25:56towards the high,
25:59forms out the M pattern, and then
26:01corrects big.
26:03This is where you should be in here or
26:05here.
26:08You understand what I'm saying?
26:14Okay.
26:16All right. Let me open up the question
26:18panel for a couple minutes, couple
26:20seconds. All right. Open. Close. No, I'm
26:22kidding. All right.
26:24This is helpful to someone like me who
26:26only has a few hours in the agent
26:27session. Yes, Bruce. Absolutely. Take a
26:30look at the big chart. Look for a look
26:32when you're looking at the 4our chart.
26:34This is what I want you to identify.
26:36Here you go.
26:39Block off the first eight hours. H high
26:43of the week. How How' they do that?
26:47Okay. Try to count your pushes. You're
26:49not always going to get them. This does
26:51not issue you a second leg
26:55low of the week. What are you supposed
26:57to be doing? You're supposed to be
26:59trading
27:02after 3 days of drop. You're looking for
27:04a long signal, false move, weak
27:07beginning, dealer cuts the psychological
27:09support, resistance level. Sorry, I hate
27:10those terms. I don't know how to use
27:12them, right? Resistance level. You're
27:14looking for an opportunity to trade down
27:18back towards some type of target.
27:23Okay, good question, Cali. Are we
27:25looking at the first eight hours? Yes,
27:27the first two bars of the beginning of
27:29the week.
27:324 hours, 8 hours right here. That's it.
27:34Block off the first 8 hours. It's the
27:37psychological support and resistance
27:38level. Is it going to play out exactly
27:40like this every week? Of course not.
27:43As soon as I say it, it probably won't
27:45do it. It's the way it always works.
27:47Then you guys will be back to Steve's
27:48nuts.
27:52If I know that these railroad tracks are
27:53forming on the 4 hour, I have my
27:55directional bias for the week now,
27:57right? Stop, hunt, high, drop, stop,
27:59hunt, high, drop, turn into W formation,
28:02looking for reversals, level three
28:04trades.
28:08Okay, no problem. Mike
28:12Lewis, yes, you can use a 1 hour chart,
28:13but some people aren't getting it on the
28:151 hour chart, so I set up the 4hour
28:17chart for you. If you can see this on
28:21the 1 hour chart, then you block the
28:22first eight bars.
28:24Understand?
28:29Yes, Susan. The week can start any time.
28:31They can remove the they can move the
28:32cycle over. In fact, that reminds me of
28:34a chart that uh someone sent me. Let's
28:37look at it.
28:39Okay, AJ, their days were off a little
28:41bit.
28:44Okay, I have to laugh because I I think
28:45it was you, Susan, that asked me about
28:47AJ last week. So, here you go.
28:52What's the difference if they move the
28:53midweek reversal to Monday or Tuesday,
28:56then they drop? Stop on high, drop, stop
28:58on, high, drop, W formation, end the
29:00week. Think for a minute. I've told you
29:03this a 100 times. Time is our problem.
29:06It's not their problem.
29:11Okay? What does it do blocking the first
29:13two bars? The first two bars are the
29:15market maker spread for the beginning of
29:17the week, right?
29:19The first two bars are the psychological
29:21support and resistance level that the
29:23dealer Let me get this out of the way.
29:29All right, I got to change back to a
29:33crosshair. Close that. All right, here
29:34we go. Look,
29:37here's the first two bars, the first two
29:39bars of the accumulation phase for the
29:41week.
29:42So if you understand that look
29:45that's your support or resistance rather
29:47here's your support right psychological
29:49support and resistance what does the
29:50dealer do he accumulates he adds an
29:53extra 4 hours on this example 4 8 12
29:55hours right of accumulation the dealer
29:58accumulates he analyzes the contract
30:01volume
30:06he looks at his contracts and he goes
30:08you know what I'm holding the opposite
30:12of what everybody sees. In this example,
30:16if the market is net long, it means the
30:20dealer is net short. Start asking
30:22yourself, what does a retail trader see?
30:24All right, you walk in here, you look at
30:25this chart, what what do retail trader
30:27see? Retail traders, the price has been
30:29going up. They made a pullback to the
30:3050. They broke out above. That's a long
30:33play in a retail trader world, right?
30:37If the retail trader world is long,
30:42then the dealer is net short. In order
30:44for the dealer to get paid and stop out
30:47the long holders,
30:50he has to hit the stops and drop. What
30:53does the dealer do? The dealer comes
30:55out, he breaks the psychological
30:57resistance level of where the contracts
30:59are accumulated, the breakout traders,
31:01all the garbage that you've fallen for.
31:04He fakes long with in eight hours of
31:06railroad tracks.
31:09He drops.
31:11Dropping does what? It beats the
31:14out of all the people that lift their
31:16stops and think they're going to average
31:17in and get out.
31:20He keeps running it down for Sunday,
31:22Monday, and Tuesday.
31:27Two or three days, people are exhausted.
31:29They haven't left their terminal. They
31:30lift their stop. Their account's in
31:31trouble. He gets their money, man. It's
31:35a couple of days. That's why the 3-day
31:37cycle for three levels.
31:40Just imagine yourself the worst trade
31:41you've ever taken where you lifted your
31:43stop. I know you've done it. You
31:44wouldn't be here.
31:47I've done it.
31:49Not going to sit here and act like if I
31:51sounded arrogant. I'm sorry. That's not
31:52my intent. I've done it. My wife has
31:54done it.
31:56You know better, but you just get tired
31:58of losing. You get tired of getting beat
32:00up, right? So, you lift your stop and
32:02you watch it run two and a half, three
32:04days and what do you do? You watch your
32:05equity dwindle and you sit there and you
32:07refuse to get up, right? And the joke I
32:10always say is you kick your dog, slap
32:12your wife, you won't leave your
32:13terminal.
32:15Price keeps running away from you and
32:16you think it's never going to stop. You
32:18cut the trade and then you come back the
32:20next day. The dealer has formed the low
32:22of the week and it reverses.
32:24How many people do you think were in
32:26your exact shoes?
32:29Too many to count. and too much money to
32:31count. That's why the dealer does it.
32:33You have to start understanding
32:36that when the dealer does this, it's an
32:38induction or inducement to get people to
32:41go the wrong way. Inducing the people to
32:43go the wrong way. When they do, they buy
32:45they lift their stops. They do all the
32:47mistakes
32:49that are common in the business. You
32:51didn't invent lifting your stop. You're
32:54not the first guy to lift your stop.
32:55You're not going to be the last last guy
32:56to lift your stop. Just understand that.
33:00Okay, he comes back for the second pass
33:02that gets the continuation Fibonacci
33:05extension traders and then in 8 hours he
33:08pulls away from this level and jams
33:10everybody up and ends the week with
33:13traps. Trader stuck.
33:17Okay, it's the same thing over and over.
33:20Psychological support and resistance.
33:23The dealer fakes it low.
33:25Exact opposite. He runs price up, forms
33:29the midweek reversal, stop on high drop,
33:32stop on high drop, spike to the low, end
33:34the week in the range. Look what
33:36happened. Net change for the week, zero.
33:39Okay, all that price action, several
33:41hundred pips down, several hundred pips
33:43up, and the dealer starts on ends on
33:45Friday where he started on Sunday, back
33:47in the same range. So if you thought you
33:50were a position trader for the week, if
33:51you're like, "Oh, I'm in this now. I'm a
33:53position trader, Steve.
33:57Then what happens?
33:59You're either stopped out with a a small
34:01gain because the dealer closed exactly
34:04where he started. That's why you're
34:05looking for 3 days of three levels.
34:09Okay. He ends the week back at the same
34:13price where he started. Very little
34:16profit seen on swing trades. Well, very
34:18little. None. How about that? None.
34:22Okay,
34:24everybody. Good. I'm looking at the
34:25questions. Second leg of the W, third
34:28level in the last example. Yes,
34:31but we look for the M's and W's on the
34:3315-minute. Absolutely. I'm not telling
34:34you to trade the 4hour chart. I'm
34:37telling you that to start understanding
34:38the course of the week. When you start
34:40looking at this on the 4-hour
34:41chart, you're going to be like, it's the
34:43same thing over and over again. This is
34:46all they got. Remember what I tell I
34:48tell you, what does the dealer have?
34:50Stop hunt, stop hunt low, trade in the
34:52range. That's it. It's all he's got.
34:56Yes, the target for swing trading has
34:58not changed. It's three times ADR over 3
35:00days.
35:03The gap is not really shown on a 4hour
35:06chart because it's absorbed inside that
35:08candle.
35:12Thanks, John. It's making some sense.
35:14Glad to hear that.
35:20Okay. All right. Good stuff. Let's move
35:22on to the next thing.
35:25Weekly cycle compares to what, Alex? I
35:27don't understand the question.
35:33The lights are on. Sounds good.
35:36Yes. You're trying to This is what
35:38you're trying to do, man. You're trying
35:40to understand the dealer's behavior
35:43when he forms the low of the week. You
35:46have a directional bias for the next
35:47couple days, two and a half to three
35:50days. Day one, day two, hold the level
35:54in day three. This is day three.
35:57Now, if you took a swing trade here,
36:02you're looking for the door in this
36:03consolidation zone.
36:052 and 1/2 to 3 days of rise. ADR * 3. I
36:09write terrible, but ADR* 3. If ADR* 3 is
36:13met, or not met, but the 3-day time
36:16window is, and you get an outside
36:18structure high, you better take your
36:19money.
36:22Okay.
36:24And go the other way. Trade both ways.
36:27If I told you that there's a low of the
36:28week and a high of the week and the
36:30dealer trades off of those numbers and
36:31back and forth, what are you afraid of?
36:33Just sticking with the trend. You're a
36:35trend trader. Remember I told you last
36:37week I I bestowed upon you trend
36:39trading. The only difference is
36:43you're trend trading with the dealer.
36:45You're trading the dealer trend, not the
36:47retail trader trend.
36:51Okay, Greg, it makes sense and says that
36:53you always pick the one that doesn't
36:54move. All right, here's here's the
36:56remedy for that, my friend. If you're a
36:58one lot trader,
37:01just for an example, break it into three
37:03pieces. Trade point 3es and three pairs.
37:06I'll cover this in here, but I'm going
37:08to just say it now and I'll I'll cover
37:09it in some of the teachings.
37:12Take a couple of pairs based off of the
37:14dollar and take a couple of non-dollar
37:16pairs. GBPCHF, EJ, GJ. Although I really
37:19don't want you trading GJ yet.
37:27All right.
37:31Spread the wealth around because if you
37:33pick a pair that's in disparity, if you
37:35pick the Frank to go short and the Frank
37:38chops, that means that the dealer's
37:40working GBPCHF, Euro CHF, he's working
37:43the crosses, right?
37:45If he's working the crosses, you may not
37:48get some movement out of the major that
37:49you picked.
37:56Okay, I'm going to address the worktime
37:57ribbons. Hang in there.
38:02Okay. Yes, Joe. All right.
38:05I'm hoping you're starting to see this.
38:10Okay. Flashcards.
38:12A lot of you posted them up there. They
38:13look good.
38:20All right. One, one or two more
38:21questions. Tommy, let me read this real
38:23quick.
38:33Yes, Tommy's saying that you don't
38:34always get three levels of rise or or
38:36three levels of drop, of course. But
38:38you're trading a signal
38:43based on a bias that you formulated.
38:45Okay? You're trading away from the peak.
38:49So here's what I'm telling you.
38:53You have the high of the week forms,
38:55right? Same pattern that I've been
38:56talking about. First eight hours of the
38:58of the week, first eight hours of the uh
39:01the trading day, micro, mini, and
39:03standard view.
39:06Okay? You're looking for this. Now you
39:09have your high of the day and your high
39:10of the week. Don't forget that stuff is
39:12going to correspond. The high of the day
39:14is also going to be a high of the week.
39:18The dealer's going to pull away. We
39:19expect this. We expect this. And then we
39:22expect this. Right? If he doesn't do
39:25this, guess what? There's no trade
39:27there. You don't trade.
39:30That's what I'm trying to get through
39:31your thick skulls. I've got a lot of
39:33emails that say, "Steve, there's only
39:36two levels of rise there, and then the
39:37dealer cut the low and he didn't do what
39:38I expected and I got stopped out."
39:43Stop trying to impose your beliefs onto
39:45the pair. Let the pair show you
39:47something and take the trade. If the
39:50dealer cuts the high at the beginning of
39:52the London,
39:56you sell. If he extends the low at the
39:58beginning of the session, forget it.
40:02Why? The dealer extended the low. I
40:04don't know if it's a straightaway
40:08or if it's a stop hunt. So, I don't take
40:11it.
40:13I only took one trade this week. I'll
40:16show it to you guys. One trade. That's
40:17it. Between writing, answering emails, I
40:20saw one good setup. Australian USD,
40:23three days of drop, perfect W formation,
40:25back into the range. Snagged it. Snagged
40:27it.
40:29Go look at it when you have some time.
40:30I'll show you the chart before we get
40:31actually I think I have pictures of it.
40:34All right, I'm going to close the chat
40:36box and get back to business.
40:40Flash cards.
40:44Okay, we'll do flash cards and we'll
40:45take a break. 10-minute break. I'll grab
40:47a soda. Duh, right? No kidding.
40:51All right,
40:52flash cards.
40:57I asked you last week to make 40 flash
41:00cards and identify
41:05one good M, one good W. Right?
41:09So now, here's what I want you to do for
41:11the week.
41:13I want you to take those flashcards
41:16and I want you to open them in Paint. If
41:19you have a Windows computer, you have
41:21this program. Go in your Explorer bar
41:23and type in Paint. It'll come up if
41:25you've never seen it before in your
41:26life.
41:28What I want you to do is I want you to
41:30block out all the data on the chart from
41:34the point of entry.
41:37I want you to compile them into a book
41:40of longs and a book of shorts and then I
41:43want you to identify a signature trade
41:46out of there.
41:48Here's what I want you to note on the
41:50cards.
41:53The time
41:55Okay, someone asked me a question. Hey,
41:56Steve, I took this trade and I don't
41:59understand why I didn't pay out and I
42:01looked at the time and it was 2 o'clock
42:03in the afternoon.
42:06The timing element. Remember what I told
42:08you? I have to say top three things
42:10about what I've taught you. The pattern,
42:12the pattern, the pattern
42:14for time, five levels, a distance, five,
42:17a distant five.
42:19The pattern, the pattern, the pattern,
42:21timing levels. That's the business.
42:24Okay,
42:26write these write this stuff down, man.
42:29Time. Don't forget it's recorded. So, we
42:31are 50 minutes in. Mark the tape. Time,
42:35position of the indicator, vectors,
42:37Asian range, distance out of Asia, type
42:40of trap or structure used,
42:44M or W,
42:47candle pattern. Robert, if I ever left
42:49you hanging without a sample, pay
42:51attention. I promise you if I get
42:52through and if I don't give you an
42:54example by the end, you can come over
42:56here and beat me up. I'm not going to
42:58tell you something without giving you
42:59examples. Just relax. Give me a chance.
43:02Pay attention. All right.
43:06Hey, what's that flash card sample?
43:10All right. Here's what I want you to do.
43:16I want you to take the cards that you've
43:18done, your sample cards. You should have
43:21taken pictures of half Batman's good
43:23M's, good W's, good entries. This is an
43:25M. Stretched it out here. It's hard to
43:26see. Okay. Can we agree that the entry
43:29is either one of these two hammers,
43:32right? We can agree on that, right?
43:35Why? You have the vectors outside to the
43:38low past the 200 in the shadow. The
43:40dealer pulls the level outside
43:42structures into consolidation. He comes
43:44back towards the level. The indicator
43:48gives us the signal.
43:53Okay.
43:56Mark the tape. Go back and look at it. I
43:58I don't know why I forgot to close the
43:59chat box, man. I'm sorry. It's driving
44:00me crazy. I'm closing it right now.
44:03Whitney, mark the tape. 50 minutes in.
44:06Go back and pull pull the information.
44:10Okay. Have a lot of stuff to cover and
44:13it's too hard to get through it. Now,
44:14here's what I want you to do.
44:18I want you to block off I'm going to
44:20we're going to do it. Don't worry. We're
44:21going to do it in here. I want you to
44:22block off where the perceived entry is.
44:25This is what it looks like. This is what
44:28the indicator looks like. This is where
44:30you are, what you're seeing on the
44:32chart.
44:34This is a retail trader downtrend.
44:38Proceed support and resistance
44:42accumulation spread three vectors to the
44:45low outside structure to the low Asian
44:49range. What is it? 41 pips. That's good.
44:51Steve said less than 50. Three vectors
44:54past the mayonnaise. Outside structure
44:56in the break shadow
44:59below holes for 1 hour 30 minutes. TDI
45:03is below the lower support band. Very
45:06important. Why? In order for TDI to get
45:10below the lower support band and above
45:12the upper support uh resistance band,
45:15you are probably at level three.
45:19Let me say that again because it's
45:20important cuz you guys take trades
45:24then you don't understand why the MRW
45:26didn't work out. You traded the pushes
45:29and you had one more push left.
45:34Okay.
45:36The TDI is below the support band and
45:40above the resistance band outside of the
45:42volatility band. Okay, that's a
45:44mouthful. If it's outside the volatility
45:47band and below the lowest support and
45:49above the highest resistance, you are
45:51probably in level three.
45:54Okay,
45:56so what else do you have? You have shark
45:57fin blood in the water 50 pip stop hunt.
46:00The distance
46:03the entry is executed on the green
46:04hammer. Stop loss was 18 pips right
46:07there. All right, that's that to me. If
46:10there was a textbook, this would be in
46:12it.
46:14Now, here's what I want you to do. I
46:16want you to compile these into a book
46:19that should look like this.
46:22I don't know if you can see it or not,
46:24but you have your
46:26short trade sets, your long trade sets,
46:28and in here, I want you to mark your
46:30signature trade
46:32for each one. Move those to the top of
46:34the stack.
46:37Okay,
46:39it's for you. Answer the phone. There's
46:41my webcam right there, too, if you're
46:44wondering. I know you're going to you're
46:45going to analyze this picture for days.
46:46It'll be on the internet tomorrow.
46:48There's my calculator to count the pips.
46:49And there's my Look, is that anal or Oh,
46:52yeah. My Diet Coke, too. Look, there's
46:54my little pens and pencils sharpened. My
46:56wife makes fun of me, man.
47:01Yes, I recommend a case of Diet Coke
47:04right there. All right, that's what I
47:05need you to have. Now, you're trading
47:08along, minding your own business,
47:11and all of a sudden, something that
47:12looks like a flash card that you did
47:14looks familiar to you on the chart. Open
47:16your chart,
47:19hold it up to your chart over here,
47:20you're like, "Wow, that looks vaguely
47:22familiar. There's a W right there. That
47:25looks like the same that Steve was
47:26talking about in class.
47:30hold it up there and go, "Man, that
47:32looks like
47:36a good setup and take it."
47:40Okay, compare notes.
47:43This is the only trade I took this week
47:44that I took Australian off a safety
47:46trade long. I'll show you guys.
47:50Okay,
47:55this is what you need to do.
47:58and hopefully
48:00you'll get the thumbs up. By the way,
48:01the photography is by my wife. Look at
48:03my reflection there. I thought that was
48:04pretty good work. It drove me crazy
48:07trying to get it, but it was a pretty
48:08good picture.
48:10All right, that's what you're trying to
48:12accomplish. That's the point of this.
48:15Take these setups, your little book that
48:17you compile, and memorize them. Leave
48:20them in the restroom. Leave them
48:21somewhere. I don't know if you guys read
48:23in the bathroom. Some of you ladies, I
48:25don't know. Leave them in there. And
48:28when you're in there hanging out, maybe
48:29make another set so you have a
48:30non-contaminated set and a regular set.
48:35Yeah, I have HP27s.
48:38Tape them to the fridge. Use magnets.
48:40Don't use tape.
48:42And then hold them up to your screen and
48:43make sure that what you see matches the
48:47successful trade card in every aspect,
48:49including the level of the indicator.
48:55Okay,
48:57they have to match exactly or they're
48:59not going to work out in every aspect.
49:02The timing element,
49:05the level of the indicator element, the
49:08blood in the water, the shark fin, all
49:09those things.
49:11All right, let's make a card right now.
49:14Let's do it.
49:17So, here's the notes.
49:19Open the snapshots that you made this
49:21week
49:24using Paint. If you don't know how to
49:26find paint, go to explorer and hit type
49:28in paint. It'll come up.
49:30Mark the proper trade entry.
49:34Block out the data to the right of it.
49:37List the things needed for a solid
49:38entry. What's your criteria for a good
49:40entry?
49:42Okay, so here, let's do one. Let me pull
49:44up my flash cards.
49:48All right, here we go. Can everyone see
49:50that?
49:56Okay, thank you. All right,
49:58let me let me lower. We agreed that this
50:00was the entry, one of these two hammers.
50:02Let's just say it's this one. Okay, now
50:05go up here. I got to get out of this uh
50:10normal drawing. Okay, let's do this so
50:12we can see the bottom of the chart.
50:14Okay, now
50:16grab this box shape up here. Okay, it's
50:19the one, two, three, fourth shape over.
50:21grab it and click on it. You're going to
50:23get this little arrow marker.
50:26Okay, let's say we got in on the green
50:28candle
50:30and let's draw the box for the green
50:32candle. So, let's do this.
50:40Okay, raise it up to the top. Pull it
50:42all the way over to the right. The data
50:44is gone. Let's adjust this to the
50:46perfect entry point.
50:49Okay, on the close of the green candle,
50:52you entered the market.
50:55All the other data should be blacked out
50:56and give you a writing surface. So, go
50:59to fill solid color.
51:03Pick the same color as your chart. Gray,
51:06blue, green, whatever you're using.
51:07Black.
51:09So, let me mark the color.
51:12Fill it up with solid. That's it. The
51:15information's gone. Simple. Don't forget
51:17to save it.
51:20Okay, now
51:22you have a writing surface over here.
51:24Grab your text
51:26and mark on here what you have.
51:30As age and range, 40 pips. Okay, I
51:32forgot one important element. You got to
51:34change the color back or it won't type
51:36any color. So, go here. Okay, first
51:39question. What's the Asian range? Asian
51:41equals
51:4241 pips. Looks good. Okay, what's the
51:46next thing?
51:49Dealer cuts the low with three vectors.
51:54All right, what's the next thing?
51:58All right, all the same reasons we went
52:00over. Dealer cuts the low with three
52:02vectors. He holds the low for an hour
52:03and 30 minutes. He comes back towards
52:06the level, issues two hammers back to
52:08back. I'm in.
52:10TDI is below the lower support.
52:15Shark fin blood in the water.
52:18Stop hunt in the shadow.
52:22Okay, the low first leg of the low is
52:24formed in the shadow box at the
52:27appropriate time of day.
52:31These are the criteria that set up for a
52:32trade. It's perfect. You take it. Now,
52:35when you hold your chart, this chart up
52:38to what you see, it should match
52:41identically, including the indicator.
52:43The indicator is very important to
52:44match. If the indicator's up here doing
52:47this crap, there's a chance that this is
52:49a push
52:51and what'll happen in essence is this.
52:56Okay.
53:02All right. Everyone good? See how to do
53:04that? Okay. Save your flash cards
53:09and mark them up. So, you should have in
53:11essence some flash cards that are
53:13labeled
53:19And you should be able to go through all
53:20your cards. These are my cards. Okay.
53:22Perceived support and resistance. This
53:24is an outside structure to the low
53:25outside to the LOD. Same exact thing.
53:28Held the level to the next session.
53:30That's the trade. Very similar. This is
53:32December.
53:34Isn't that the a similar pattern to what
53:36I just showed you?
53:43Okay.
53:45Perfect. And three hits to the high.
53:51Snagged him on the railroad tracks.
53:57M formation t uh three hits. TDI is
54:00extremely divergent. I grabbed him on
54:01the close of the railroad track.
54:06Okay. Out here at the M at the water
54:07mark.
54:11Look how look at this one right here.
54:13The dealer kept hitting the high and
54:15look at TDI
54:18M formation with divergent TDI. Notice
54:21TDI is very high. Look at the look at
54:23the level. This was before we started
54:25using the double bands and spread it
54:27out. This is closer to Dean's version.
54:31Okay, this is the stuff you have to
54:33learn how to identify.
54:36Okay, cow on the lot. What the hell is a
54:38cow on the lot? cord of wood to the low
54:41of the day. Beautiful.
54:46Okay. In and out.
54:49So, if you don't know what a cow on the
54:50lot is, now you do.
54:54Not going to go through all the cards.
54:57This is exactly what Euro did this week.
55:00This is Euro CAD. He went slightly above
55:02the Asian range. He made the vector
55:05outside structure to the low. came back
55:07right before the US session at 9:30. Got
55:10him.
55:16Okay, look what he did here. Here's the
55:19pattern.
55:21He He grabbed the pending spike to the
55:23mayonnaise, hit it here, runs right up,
55:28hits it again.
55:30Both directions in the range. Had to
55:32take a little heat right there, but the
55:33trade ended up paying out. How do I know
55:35the trade's still good? Anybody?
55:39The dealer didn't break the high on the
55:40second pass. Trade still valid.
55:48Okay,
55:50look. I'm human. Got in on TDIW too
55:54early. Look, this is what I saw. I got
55:56excited just like you. Got in too early.
55:59Stop is below the low of the day. I took
56:02a little heat, but I was good.
56:09Okay. Just happened to be there when it
56:10limited up. Snapped a picture.
56:18Okay. These should This is my book, man.
56:20This is my flash cards. Look,
56:24Steve. I shorted here. Why didn't it
56:26work? It didn't work cuz there's no
56:28second leg. And you're getting into the
56:30session changeover. Well into the
56:32session.
56:34Look, one, two, three pushes.
56:39If you didn't limit up, here's the exit
56:41and consolidation. The dealer comes back
56:43to the high the next night. That's a
56:44multi session M22 trade.
56:51All right, a couple more, man. I'll do
56:52some more next week.
56:56Same thing.
57:04This one was in the form. This was
57:13right back to the mayonnaise. Slightly
57:15below the tracer, right? The dealer
57:16makes the stop slightly below the tracer
57:18and rises.
57:25Safety trade. This is the same thing I
57:27took in uh Australian this week. Go look
57:29at it. Dealer makes a peak formation
57:31low, comes back 50 to 75 pips off of the
57:35level. Stop hunt W formation rise.
57:43All right, last one.
57:46I don't want you to trade these right
57:48now, but understand this is the same
57:50behavior.
57:53out to the mayonnaise.
57:55Stop hunting the 50 EMA out at out at
57:57the Mayo. All right, it's a good place
58:01to take a 10-minute break and then I'll
58:02get into
58:04the regular stuff. Let me clear the
58:06board
58:08of all these photographs
58:11and I'll open up the lessons. Take a
58:14Let's do 10 minutes. Okay.
58:18All right. Let's do this first. Any
58:20questions? You know how to make a flash
58:23card now, right? Okay. Look, if you
58:26don't do it, it's not going to help you.
58:28You have to learn the patterns and the
58:30behaviors, man. You have to You have to
58:32see what the dealer does. You have to
58:35make the flash card.
58:38Okay. All right. Here's what I want you
58:40to do with the flash cards.
58:44I'm going to give you the I'm going to
58:45give you the homework, then I'll give it
58:46again for the break. Let's Let's go to
58:48this chart right here. Okay. research
58:50and development for the week. Do four
58:53weekly cycle markups on the 4hour chart.
58:57Do one in each major.
59:08All right. Any date range you want.
59:10That's the homework for
59:14the weekly cycle. I want you to try to
59:16start to understand the bigger picture.
59:17We're going to we're going to do
59:19standard, mini, micro. We're going to
59:21dial it down. But I want you to
59:23understand the standard view. The big
59:25view. You have to understand the big
59:26picture. Psychological support and
59:28resistance. First part of the week
59:29accumulate. The dealer builds contracts
59:32and he exploits those levels. He hits
59:34the stops, drops, hits the stops and
59:36rises. He'll form the low of the week or
59:39the high of the week and trade away from
59:40that range for a couple of days. He
59:42might go back to the level. He might go
59:45back and repeat the same high or low.
59:47The reason is
59:51because there's orders built up there.
59:53There's stops that are there. So, he has
59:55to go back.
59:58Okay. Couple of questions. Want to know
59:59how to read the TDI level lines. Please
1:00:01define cord of wood. Tom, the uh cord of
1:00:04wood is when the dealer just lays on the
1:00:06low or lays on the high and he forms
1:00:08like what looks like a cord of wood. is
1:00:11all sideways logs, right? If when you
1:00:14stack a quarter of wood, it's just
1:00:16sideways. So, the dealer would hit the
1:00:18level and just lay there.
1:00:24Okay. You mentioned to trade one euro
1:00:25and two others. No, I mentioned to trade
1:00:27a combination of USD base pairs, a
1:00:30couple of the majors, and then a couple
1:00:31of crosses. Why? The dealer works the
1:00:34fractional disparity with the major. So
1:00:36if he's holding euro for example
1:00:40then the trades will establish
1:00:42themselves in any euro cross euro odd
1:00:45euro CHF
1:00:47Euro CAD
1:00:49that's what I'm talking about okay
1:00:57first two candles at the start of the
1:00:58day correct yes the first eight hours of
1:01:00the day the dealer will set the market
1:01:03maker spread
1:01:07Whitney, I should yell at you. What do I
1:01:09mean? Position of the indicators,
1:01:10position of the averages. Yes, here's
1:01:13what I mean.
1:01:15The position of the indicator is the
1:01:17indicator flopping around in between the
1:01:18bands or is the indicator here, let me
1:01:21let me get a picture of one. Okay,
1:01:24here's what I mean. We're not on the
1:01:26break yet. Hold on. Back up. One more
1:01:28chart. All right.
1:01:33Grab the pen. All right, here's your
1:01:34indicator, your subgraph, right? You
1:01:37have the the center line and you have
1:01:39the
1:01:41higher bands. Okay, position of the
1:01:43indicator would be the RSI line breaks
1:01:46outside of a band and it's well below
1:01:53the support line. I am going to cover
1:01:54TDI later, but just so you know what I'm
1:01:57talking about. When you find the
1:01:59indicator overextended, overbought or
1:02:01oversold is what they technically call
1:02:02it. When it's overextended, well below
1:02:05most of the time, remember I just showed
1:02:07you the the 1 2 3 in the indicator
1:02:11in order to get at the extreme at
1:02:15like pl
1:02:20or 80 something very high on the chart.
1:02:22In order for it to get into the extremes
1:02:25of the the zones, you're most likely
1:02:28finding yourself at level three. Okay,
1:02:32that's what I mean.
1:02:38Do you do flash cards on the 4 hour
1:02:4015-minute? 15-minute, man. The flash
1:02:43cards are on the 15minute. You're
1:02:45looking for perfect M's and W's.
1:02:50Obviously, you have hindsight in your
1:02:52favor. Don't take pictures of ones that
1:02:54didn't pay out. Take pictures of the
1:02:56perfect M&W formation that you know paid
1:02:58out.
1:03:00Now, you're looking for the
1:03:01characteristics of why that paid out. In
1:03:04essence, it's a checklist for you
1:03:06mentally.
1:03:11If you know that the perfect W formation
1:03:14vectorred to the low past the mayonnaise
1:03:17and you saw the hammer in the second
1:03:19leg, you block out all the other data.
1:03:22Now, if you're sitting in front of your
1:03:23screen at 3:30 in the morning inside the
1:03:26shadow box and you see that exact
1:03:28pattern again where the indicator is
1:03:30below the support level and a W forms
1:03:33second leg, you hold it up. Don't don't
1:03:36you don't you get the joke? Look, you
1:03:38hold it up
1:03:40and you make a out of yourself
1:03:45and you go, "Hey, that matches exactly
1:03:47like my signature trade. That matches
1:03:50exactly like the perfect W formation."
1:03:57And there you have it. Actually, having
1:03:59the ones that do not pay out is useful,
1:04:00too. Peter, no, don't do that.
1:04:05Here's why.
1:04:07Don't memorize the wrong You're
1:04:10wasting your time.
1:04:12I want you to get all the negativity,
1:04:14all the losing trades, all that stuff
1:04:16out of your mind and only take
1:04:19the good ones. Having a a flash card of
1:04:22a loser is not going to help you stay
1:04:24out of it
1:04:26because you're not taking those. You're
1:04:27only taking the ones for certain that
1:04:29match your paid out flash cards. Don't
1:04:32you understand? I don't want you to
1:04:33build patterns in your mind of losers. I
1:04:36want you to build the patterns in your
1:04:37mind of positive trades. Eventually, you
1:04:40will throw the book away in the garbage
1:04:43because the patterns will be in your
1:04:44head. You're going to say your checklist
1:04:47is going to be Asian range less than 50
1:04:49pips. Dealer vectors three bars to the
1:04:51low. I see that dealer pulls back 25
1:04:55pips off of the low in the shadow box
1:04:56and hits it again. He [snorts] just
1:04:58misses the low of the day. He issues a
1:05:01hammer. TDI is at minus 10 or or
1:05:05whatever the number is at the bottom.
1:05:0610. It's below the two little the
1:05:09support ribbon. It forms a W. There's a
1:05:11shark fin. It crosses back in, hits the
1:05:14bloodline.
1:05:16That's a trade I want to take. I've seen
1:05:18it a hundred times when I was in the
1:05:19bathroom looking at my flash cards.
1:05:23Memorize the winning productive patterns
1:05:25and take all the other negativity out of
1:05:27your life. All right? I'm not ripping on
1:05:29you, Peter. I'm just saying I don't want
1:05:31you to waste your time taking snapshots
1:05:33of garbage that doesn't work. I want you
1:05:36to focus on four or five good longs,
1:05:40four or five good shorts, and only take
1:05:42those trades. Okay? That's where
1:05:46patience comes in.
1:05:50How many should you have at the
1:05:51beginning? Very good.
1:05:54Four or five
1:05:56longs, four or five shorts. out of those
1:05:59identify your signature. TDI is 68 and
1:06:0232. Above the 68, below the 32, but I
1:06:05like to see even like all the way to the
1:06:07extreme, man. Almost bouncing off the
1:06:09bottom.
1:06:17All right. Yes, Terry, I will.
1:06:21All right, Richard. Good. You figured it
1:06:22out. Okay. I went a little long. It's a
1:06:25good place to take a break.
1:06:33Okay, Trudy, I'll look into that. I'll
1:06:35have Zen take a look at what's going on
1:06:37with that.
1:06:41See, if you're trading one in four
1:06:43hours, would you do flash cards on the
1:06:44time chain you're trading? Absolutely,
1:06:46Dave. Very good point. Some of you are
1:06:48swing trading, you're trading on the
1:06:49higher time compressions,
1:06:51then make your flash cards on the
1:06:53compression you're looking for your
1:06:54entries. If you're going to take a 1
1:06:55hour entry, then your flash cards need
1:06:58to be 1 hour entries. Here's why. The 1
1:07:00hour chart and 4-hour chart will show
1:07:03more railroad track sets
1:07:06than they will M&W formations. Because
1:07:09those formations happen within a 4-hour
1:07:11time span, you will only see one bar
1:07:13dropping, which is a railroad track.
1:07:16Okay.
1:07:22All right.
1:07:25Okay. So, I'm going we're going to take
1:07:27a break, I guess. Let's do a 10-minute.
1:07:29I'll grab a Coke, clean my screen off,
1:07:31and pull up the next uh what did I say?
1:07:35Repeat what again?
1:07:37Signature trade. Oh, work time. Let's go
1:07:39over two more things. I'll take a break.
1:07:41The work time ribbon. I posted in the
1:07:43forum the update for that. But here's
1:07:45the deal.
1:07:47The student folder is not ready yet.
1:07:51It's not that I'm lazy. It's that I'm
1:07:53having the same problem you guys are
1:07:55having with the worktime ribbon.
1:07:58More emails are generated about the
1:07:59worktime ribbon than anything else that
1:08:01I've ever read in my life. That's not
1:08:03the purpose of the worktime ribbon. It's
1:08:05not to generate emails and to keep you
1:08:07confused. That's not the point here. I'm
1:08:10working with Ray and I'm trying to
1:08:11figure out the best way to either make a
1:08:14standard set
1:08:17that when you put it on your chart, it
1:08:19just hits the tracer on the left
1:08:21and it's good to go. We'll figure it
1:08:23out, but I'm not going to post the
1:08:24student folder until that shit's fixed
1:08:26because it's going to generate a ton of
1:08:28unnecessary emails.
1:08:30So, I'm going to figure it out with Ray
1:08:32over the next few days, few weeks. I
1:08:33don't know how long it's going to take.
1:08:35In the meantime, use the original gray
1:08:37template that you got in the student
1:08:39folder. There's nothing wrong with that.
1:08:40It's fine. But I want to get this
1:08:42worktime ribbon organized so that it
1:08:45stops falling off the chart. It stops uh
1:08:48moving.
1:08:50I don't know if there's a bug in the
1:08:51code. We'll get it figured out though,
1:08:53okay? I promise you that. And you know,
1:08:55I I do what I say. I'm going to get it
1:08:57done. I'm going to get it right so the
1:08:59so this stuff stops. Okay?
1:09:03All right. Let's see. Signature trade.
1:09:05Signature trade is a trade that you see
1:09:08crystal clear. It might be a 22. It
1:09:10might be a spike to the mayonnaise,
1:09:16Alex. I'd love to hear about it. Uh,
1:09:18please send it to me.
1:09:25Scott, let's see.
1:09:29No, you're not. You just got to get used
1:09:30to using this stuff, man. I You know
1:09:31what? you're gonna have to just step up
1:09:34and learn the platform and take some
1:09:35time doing the things that you need to
1:09:37do. Listen, if you're struggling with
1:09:38the platform and basic computer stuff,
1:09:41you got to stop what you're doing and
1:09:43work on that skill in order to move into
1:09:45the next level. And and I don't mean any
1:09:47offense or disrespect, but if you can't
1:09:49move a mouse around and work the
1:09:51platform and handle paint, obviously
1:09:54you're going to have a hard time making
1:09:55the cards and new things. I understand
1:09:56you're frustrated. The recordings are
1:09:58going to be up. Take some time. block
1:10:01off some time on Sunday or Saturday and
1:10:04mess around with the computer for a
1:10:05couple of hours. Okay.
1:10:08Yes, Compass has uh some videos on how
1:10:11to use the platform.
1:10:14Michael, drop another template on there
1:10:15and see if it reloads the boxes. How
1:10:18many times can you enter? Lou, as much
1:10:20as your margin can take for you.
1:10:22Everybody else know.
1:10:28All right, Lou. You enter 2% risk, man.
1:10:32As many as your account will bear up to
1:10:342% risk. If you happen to snag it very
1:10:37close to the high, then your lot size
1:10:38can be a little bigger because your stop
1:10:40can be 10 or 15 pips.

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